How Statistics Canada’s reputation fares after the episode — which forced the data-gathering agency to take the unusual step of removing the original report from its website after detecting what it called a “processing error” – is another. Read More »

The strong rebound in business investment that Bank of Canada Governor Stephen Poloz has been waiting on shows no sign of arriving.

Statistics Canada’s annual surveyof private- and public-sector investment intentions, published Wednesday, suggested capital spending is set to rise by a modest 1.4% in 2014 to 404.5 billion Canadian dollars ($364.9 billion) — or below the estimated gain in 2013 of 1.5%, and the weakest annual advance since a decline in 2009 due to global economic unrest.

This would also mark the second straight year of lacklustre capital spending by businesses and public-sector organizations, and represent the weakest two-year pace of growth since the mid-1990s.

“The result was on the weak side,” said Charles St-Arnaud, senior economist and currency strategist at Nomura Securities in New York, arguing the survey’s results tend to be a good leading indicator on the direction of the Canadian economy. “I wouldn’t put too much weight on the idea business investment is going to be a source of economic growth this year.” Read More »

The Canadian economy looks to be growing a little faster than expected thanks to thriving fertilizer sales.

Heavier-than-expected demand for fertilizer — in part because of a delayed planting season due to wet, cold weather — has played an influential role in driving gains in two key May economic indicators: manufacturing and wholesale trade.

Markets were caught a bit by surprise Thursday with a 2.3% advance in Canadian wholesale trade, the fastest one-month gain in over two years and well above expectations for a 0.3% gain. Volumes were up 2.4%. Statistics Canada attributed the robust data partly to strong demand for fertilizer, which helped propel sales of the agricultural supply sector higher by 19.6% in May from April. Read More »

Seems Canadians are starting to heed recent warnings about the perils of piling on debt.

Although Canada’s household debt-to-income ratio hit another record high in the fourth quarter, the pace of growth slowed sharply. And that should please policymakers who worry that financially stretched Canadians might not be able to service their debts when interest rates rise.

With much of the debt build-up related to Canadians taking advantage of low interest rates to buy houses, Finance Minister Jim Flaherty sounded warning bells last July when he tightened mortgage insurance rules for the fourth time in as many years. And in October, the Bank of Canada said household debt – which it deems the biggest domestic risk to financial stability — is one of the factors to be considered in any potential rate hikes.

The moves are having an impact on debt and the housing market. According to data from Statistics Canada Friday, the household debt-to-income ratio was a record 164.97% in October through December, but it edged up just 0.3 points compared to increases of 1.46 points and 1.62 points in the two preceding quarters.

About Canada Real Time

Canada Real Time provides insight and analysis into what’s making news in Canada, a country punching above its weight on the world stage thanks to its vast resources and strong banking sector. Drawing on the expertise of The Wall Street Journal and Dow Jones Newswires, we take a look at developments in fields ranging from business to politics to culture. You can contact the editors at canadaeditors@dowjones.com